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Senators have raised concerns over the rapid increase in public debt which has surged to Sh11.02 trillion as of January, 2025, equivalent to about 65 per cent of the Gross Domestic Product (GDP).
Nyandarua Senator John Methu sought a statement from the Senate Finance and Budget Committee over Kenya’s total public guaranteed debt and its implications for the economy and service delivery.
He said the indebtedness exceeds the 55 per cent GDP threshold recommended under the Public Finance Management framework with the accumulation of debt compounded by ballooning debt servicing costs, persistent fiscal deficit and reliance on external borrowing.
“Of particular concern is that the bilateral debt stands at Sh1.09 trillion of which China holds 62.6 per cent, the country now faces the risk of being trapped in a debt cycle that threatens national sovereignty, economic growth and service delivery,” said Methu.
He asked what measures the government is taking to ensure Kenya’s public debt remains within sustainable levels and safeguarding national development priorities.
He wanted senators be told of strategies in place to balance borrowing and revenue collection, particularly in light of Kenya’s continued dependence on external financing for key infrastructure projects.
Methu sought the Senate Finance Committee to tell the House of the status of physical consolidation measures aimed at reducing wasteful government expenditure and enhancing domestic revenue mobilisation.
“We should be told of the government’s plan to manage debt servicing obligations, including the steps being taken to renegotiate payment terms with major creditors such as China and multilateral lenders,” said Methu.
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